car rental business plan malaysia

How to Write a Car Rental Business Plan: Complete Guide

• January 30, 2023

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Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your car rental business, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car rental business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and /or investors. Potential lenders and investors will lose interest if the information you provide is not concise, informative, and scannable.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it’s the summary of the different sections included in your business plan. 

Why do you need a business plan for a car rental business? 

The purpose of a business plan is to secure funding through one of the following channels; 

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc
• Obtain a public or a private grant

How to write your car rental business plan’s executive summary?

Provide a clear and accurate summary of every section, including every piece of information that could attract potential lenders and investors to your business.

Always ensure that the executive summary doesn’t go beyond 2 pages and only includes valuable information for the investors. 

In summary, the 5 key sub-sections you should include in your executive summary are:

• Business Overview : this section is one of the most important, it should provide information about your car rental business model. For example, make it clear if you will lease small cars alone or include trucks and vans as part of your business. Also, be sure to include a detailed list outlining all the services you will offer at your car rental store. If you are offering short-term or long-term car rental solutions, then you must also mention it here. 
• Market Overview : Describe your market, the region’s demographic distribution, and the target market’s average income. Be clear on the specific problem your car rental business will solve and the expected number of competitors in the region. 
• People : introduce your management structure, their experience level, and relevance to your business model. If it’s a partnership, who are your partners, what is their role in the business, and what’s the leadership hierarchy? 
• Financial Plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit . 
• Funding Ask : what loan/investment/grant are you seeking? How much do you need? How long will it last?

Car Rental Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Car Rental Business Overview

This section should introduce your company, mentioning crucial details about your car rental business by answering some of the following questions; 

• Why are you starting a car rental business? 
• Where exactly is your car rental shop/store located? 
• Why did you choose that location? 
• What type of car rental store are you opening?
• How many cars/vans/trucks will you have from the start? 
• What car rental services will you offer?
• What will be your pricing strategy ? 
• What will be your operating hours? 
• What will be the legal structure of your company?

Read on to find out more information about other important sub-sections of the business overview:

a) History of the Project

Like for any business plan, you must explain clearly why you decided to start a car rental business today. You can explain that in the following subsections; 

• Your passion & experience
• The rationale behind you starting this business today

Passion & Experience

Being passionate about your car rental business proves your commitment to running it. And sometimes, that’s all lenders need to provide funding for your business.

It’s even better if you have prior experience in the field, showing your credibility and ability to run a successful business. But that doesn’t mean little or no experience won’t count. Just be sure to provide enough reasons to justify your ability to start and run a successful car rental business. 

Now that you have demonstrated your experience and interest for this business and industry, you must explain why opening a new car rental company in your area makes sense today.

What problem will your car rental store solve in the region? For example, if many car rental stores in the region only offer small cars and vans, your store could specialize in trucks and other heavy vehicles instead.

Of course, you would have to demonstrate that there is a market for it. For instance, if you start a car rental business in an affluent residential estate, where a majority own personal cars, your business might not be successful. Similarly, opening a new store when the region already has stiff competition may limit your growth opportunities.

b) Business Model

This section should provide information about your car rental company’s business model.

First, find out if you want to start your car rental store from scratch or use a car rental franchise. Also, make it clear if you will lease small cars and vans alone or include trucks.

Other important questions you should answer here include:

• Will you offer car rental services to a specific market or the general consumers? (economic vehicles vs. premium vehicles)
• Will you provide short-term or long-term car rental services? 
• Will your car rental business target other businesses or individuals? 

Another significant aspect to keep in mind is whether you will need auto repair services within the same premises or a personal mechanic for frequent maintenance.

c) Products & Services

It’s no secret that your car rental company’s services and products will determine your business’ revenues and profitability.

So it’s important to list here all the types of cars you intend to rent as well as other potential extra services to help investors and lenders better understand your business model.

Of course, leasing cars is the main service you will offer at your car rental store. However, depending on your target market , you can always add extra services to make you stand out vs. competitors.

For instance, if you target business travelers, you may want to stick to short-term rentals with premium cars. Instead, if your store is located next to a airport in a touristic area (such as an island), you may want to offer anything from economic to family cars and even RVs and campers.

d) Pricing Strategy

Use this segment to give the clients, lenders, and investors a sneak peek of your pricing structure. Notably, your prices should reflect the standard rates offered by your competitors.

You should add here a pricing list outlining the average rental price per vehicle category (economy, sedan, premium, vans, etc.). You don’t have to provide accurate figures but price ranges instead.

Including a pricing table with the main vehicle categories is necessary to help investors compare your pricing strategy with your financial projections later on.

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Car Rental Business Market Analysis

A complete understanding of the market where you want to operate is important for the success of your business. For example, opening your car rental store in an area where a vast majority have personal cars may not be the best decision. 

Similarly, setting up your store in a region where a large population relies on other means of transport may limit the growth opportunities.

Therefore, you must cover 3 important areas in the market overview or market analysis section of your car rental business plan:

• Car rental industry status quo : how big is the car rental industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis :  who is your target audience ? What type of vehicles do they prefer? How regularly do they rent cars?

a) Car Rental Industry Status Quo

How big is the car rental industry in the us.

The US car rental industry is estimated to be $54.2 billion in 2022. The steady growth (9.8% in 2022) is attributed to the increased demand for transportation services and the overburdened public transportation system. Also, new technologies like GPS tracking have made it easier for many establishments to acquire and retain customers. 

How big is the car rental industry in your area?

Once you have an overall picture of the national statistics, focus on the local figures. If you can’t find specific information online (it’s hard to find region-specific details, by the way), read this guide on how to estimate TAM, SAM, and SOM for new businesses. 

So, as there are 17,287 car rental businesses in the US in 2022 with a total annual revenue of $54.2 billion, the average annual revenue for each car rental business is around $3 million. So, the area where you plan to open your car rental company already has 20 competitors, you can assume that the car rental industry in your area is valued at about $60 million.

How fast is the car rental industry growing in your area?

As part of the market trends , you must also assess the growth rate of the car rental industry where you operate.

If you can’t find the information online, you can use the number of competitors as a proxy. For example, if the region had only 18 car rental stores in 2020, which increased to 20 in 2022, you can assume the average annual growth rate of the car rental industry is around 5% in your city / area.

b) Competition Overview

Understanding the level of competition in the region is just as important. Find out the strengths and weaknesses of your competitors, knowing the major driving forces behind their success or why they fail. 

Take note of their services, marketing strategies, and anything else that can help your establishment stand out. If many stores offer the same service, try to stand out by taking a unique approach. That’s only possible with enough online and offline research to help you identify an exceptional product or service.

c) Customer Analysis

This is where you provide detailed information about your target audience. It is similar to the details on the business overview section of your business plan, only that you will provide detailed information this time. A few important metrics that should be part of your analysis include; 

• Average expenditure on car rental services
• Frequency of visits (How often do they need car rental services?)
• Average monthly or annual spending on car rental services
• Type of car rental services preferred 
• Anything they like or dislike about existing car rental businesses

4. Sales & Marketing Strategy

This section sums up your plans for acquiring new clients. Staying ahead of the competition can be challenging when starting a car rental business. So, here are a few sample questions to help guide you in selecting the right marketing strategy ; 

• What are your Unique Selling Points (USPs)?
• What are the different marketing strategies you will use? 
• How do you intend to track the success of your marketing strategy? 
• What is your customer acquisition cost (CAC)? 
• What is your marketing budget? 
• What introductory promos and offers do you intend to provide to attract new customers? 

What marketing channels do car rental companies use? 

Some of the best marketing channels for a car rental business include; 

• PPC ads, Facebook ads, etc. 
• Car rental aggregator platforms (booking websites)
• TV & radio advertisements
• Partnerships with hotels, booking platforms, corporates
• Loyalty programs

You don’t have to rely on all the marketing channels listed above. Instead, choose the most suitable options to help you acquire many clients as your business grows. Later, you can use other marketing strategies depending on your business’s performance. 

What are your Unique Selling Points (USP)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are; 

• High-quality services / vehicles
• Unique vehicles (e.g. luxury cars, RVs & campers, etc.)
• Promos and offers (e.g. discounts on long or multiple rentals)

5. Management & Organizational Structure

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure: different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car rental business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

b) Organizational Structure

Even if you haven’t already hired anyone yet, you must provide a chart of the organizational structure defining the hierarchy of reporting of your company.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any car rental business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your car rental business is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new car rental business, purchase new vehicles, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a car rental, startup costs are all the expenses you incur before you open your stores and start making sales. These expenses typically are:

• The renovation / refurbishment of the building / space
• The acquisition of the vehicle fleet

As you can see, the startup costs vary mostly depending on factors like the size and the quality of the fleet of vehicles you intend to rent to your customers.

As an example, it costs on average $220,000 to $243,000 to start a car rental business with 30 cars.

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a car rental business, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your car rental company.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your car rental company.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 20%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of your car rental business plan. Now that we have explained what vehicles your car rental company offers to whom as well as your marketing strategy, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any car rental business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in purchasing the fleet? Or will it cover mostly the cost for the warehouse and its renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our Car rental financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Car Rental Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Car Rental Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Car Rental Plan Here

You’ve come to the right place to create your car rental business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their car rental company.

Car Rental Business Plan Example

Below are links to each section of your car rental business plan template:

Next Section: Executive Summary >

Car Rental Business Plan FAQs

What is a car rental business plan.

A car rental business plan is a plan to start and/or grow your car rental business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your car rental business plan using our Car Rental Business Plan Template here .

What Are the Main Types of Car Rental Companies?

There are a few types of car rental companies. Most are franchises of a large and successful rental company and offer all types of car rentals. There are also car rental companies that only focus on luxury vehicles. More people are renting high-end vehicles for a few days or when they go on vacation. There are also smaller-scale car rental companies that only operate in one city and are independently owned.

What Are the Main Sources of Revenue and Expenses for a Car Rental Business?

The primary source of revenue for car rental companies are fees the customer pays for car rental services. The fee will depend on the type of car and length of rental.

The key expenses are the cost of purchasing the fleet of vehicles to use for rental cars, business insurance, vehicle maintenance, and washing and detailing the vehicle every time it is returned. Other expenses are the overhead expenses for the leased location, utilities, website maintenance, and any marketing materials or advertising fees.

How Do You Get Funding for Your Car Rental Business Plan?

If you are looking to start your own car rental business, you will most likely need help funding your startup costs. A car rental company is most likely to receive funding with a business loan from a bank. Typically you will find a local bank and present your business plan to them. Another option is the SBA as they provide viable loans for startup businesses. This is true for a business plan for a car rental company and a luxury car rental business plan.

What are the Steps To Start a Car Rental Business?

Starting a car rental company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Car Rental Business Plan - The first step in starting a business is to create a detailed car rental business plan that outlines all aspects of the venture. This should include market research on the car rental industry and potential target market size, information about the services or products you will offer, your marketing strategy, pricing details and your financial plan.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your car rental business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your car rental business is in compliance with local laws.

3. Register Your Car Rental Business - Once you have chosen a legal structure, the next step is to register your car rental business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your car rental business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Car Rental Equipment & Supplies - In order to start your car rental business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your car rental business. This includes creating a business website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful car rental business:

• How to Start a Car Rental Business

Where Can I Get a Car Rental Business Plan PDF?

You can download our car rental business plan PDF template here. This is a business plan template you can use in PDF format.

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Malaysia Car Rental Companies

This report lists the top Malaysia Car Rental companies based on the 2023 & 2024 market share reports. Mordor Intelligence expert advisors conducted extensive research and identified these brands to be the leaders in the Malaysia Car Rental industry.

Malaysia Car Rental Top Companies

The Hertz Corporation

Hawk Rent A car

Europcar Mobility Group

Mayflower Car Rental Sdn Bhd

Avis Rent A Car LLC

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Malaysia Car Rental Market Concentration

Malaysia Car Rental Company List

Hawk Rent A Car LLC

Suria Car Rental & Tour Sdn

Paradise Rent A Car

Galaxy Asia Car Rental

Avis Rent a Car LLC

Spanco Sdn Bhd

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Car Rental Business License

In order to conduct a car rental business in Malaysia, you will need a valid Business License from the Malaysian authorities. The process of obtaining a Business License can be lengthy and complicated, but we have made it easy for you. You just need to fill out the form and place an order online by clicking the following button: 

Processing steps of your applications

Frequently Asked Question

What is a car rental business license.

A car rental business license is a permit required to operate a car rental business. The license is issued by the local government where the business will be operating. The requirements for a car rental business license vary from state to state, but generally, the applicant must have a valid driver’s license, insurance, and registration for the vehicles that will be rented out.

The applicant must also pass a background check. Once the license is issued, the business must comply with all local ordinances and regulations. Operating a car rental business without a license is illegal and can result in heavy fines and penalties. 

Why is a Car Rental Business License necessary in Malaysia?

A Car Rental Business License is essential in Malaysia because it allows the business to operate legally. Without a license, the business would be breaking the law and could be subject to heavy fines and penalties.

How to get a Car Rental Business License in Malaysia?

In order to get a car rental business license in Malaysia, you will need to submit the following documents to your local licensing authority:

• A completed business license application form
• A copy of your company’s registration certificate 
• Proof of Malay or foreign ownership, such as a photocopy of your passport or identity card 
• A copy of your car rental lease agreement 
• The required license fee payment 

How long does it take to process a Car Rental Business License?

It can take up to six weeks to process a car rental business license in Malaysia. The turnaround time will vary depending on the Malaysian state in which you apply, as well as the efficiency of the local authority processing your application. If you are planning to open a car rental business in Malaysia, it is important to start the process as soon as possible to ensure that you can begin operations in a timely manner.

Who is eligible to apply for a Car Rental Business License?

A Car Rental Business License is required in order to operate a car rental business in Malaysia. The process and requirements for applying for a license may vary depending on the state or territory in which the business will be located. However, generally speaking, businesses will need to submit an application form along with supporting documentation such as proof of insurance, a safety plan, and a list of vehicles that will be available for rent. Once the application has been reviewed and approved, the business will be issued a Car Rental Business License. 

Who is in charge of the Car Rental Business License in Malaysia?

The Malaysian Ministry of Transport is in charge of car rental business licenses in Malaysia. You can find more information on their website.

What are the benefits of having a Car Rental Business License?

The benefits of having such a license include the following:

• Renting from a licensed company gives customers piece of mind as they know the company is reputable and has been approved by the relevant authorities.
• The license enables companies to rent out vehicles legally, providing them with the necessary insurance coverage.
• The license ensures that only qualified and experienced drivers work for the company, thus reducing the risk of accidents.

Operating a car rental business without a license can result in heavy fines, so it is always advisable to ensure that your company is properly.

What are the requirements for a Car Rental Business License in Malaysia?

You will find the detailed requirements for a Car Rental Business License in Malaysia once you place an order. Generally, you need to have a business premise/office, as well as a valid driver’s license. You will also need to provide documentation that proves your company is insured and has adequate vehicle coverage. Finally, you will need to submit an application and fee to process smoothly.

How to Start a Successful Car Rental Business

ON THIS PAGE:

How To Start Your Own Car Rental Business

• How To Start a Car Rental Business FAQs

Helpful Videos & Images

Additional car rental industry resources.

Starting a car rental business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful car rental business.

Importantly, a critical step in starting a car rental business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Car Rental Business Plan Template here .

Download our Ultimate Car Rental Business Plan Template here

16 Steps To Start a Car Rental Business

Determine which type of car rental company to open, choose the name for your car rental business, develop your car rental business plan, choose the legal structure for your car rental business, secure startup funding for your car rental business (if needed), secure a location for your business, register your car rental business with the irs, open a business bank account, get a business credit card, get the required business licenses and permits, get business insurance for your car rental business, buy or lease the right car rental business equipment, develop your car rental business marketing materials, purchase and setup the software needed to run your car rental business, hire your car rental business team, open for business.

There are a few different types of car rental companies that you can manage. Depending on the market in your area, you might consider standard rentals or even offer classic and exotic cars. Luxury car rentals are also popular in some areas and can be very profitable due to their high rental costs. The most important factor is to determine which type or types of rental will work in your target market.

You should also consider whether you want to own an independent small business or become part of a car rental franchise. Small business owners have more freedom and flexibility in how they run their companies but do not have the support and backing of a larger company to help guide them. Opening a franchise location might be easier if you do not have experience managing car rentals, but you will need to pay an initial franchise fee and meet some other requirements. It is important to review the pros and cons of each option and decide what works for you.

The next step to starting a car rental business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your car rental business:

• Make Sure the Name Is Available – Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep It Simple – The best names are usually ones that are easy to remember, pronounce and spell.
• Think About Marketing – Come up with a name that reflects the desired brand and/or focus of your car rental business.

One of the most important steps in starting a car rental business is to develop your car rental business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample car rental business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your car rental business.
• Company Overview – this section tells the reader about the history of your car rental business and what type of car rental business you operate. For example, are you a standard or exotic car rental business?
• Industry Analysis – here you will document key information about the car rental industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your car rental business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your car rental business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Car Rental Business Plan Template and complete your plan and financial model in hours.

Next you need to choose a legal business structure for your car rental business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the car rental business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a car rental business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a car rental business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a legal business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a car rental business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others. Once you register your car rental business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

In developing your car rental business plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a car rental business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a car rental business that they believe has high potential for growth.

Having the right location can be important for your car rental business, particularly if you need space for many vehicles. You might also want to pursue a location near businesses such as hotels that can draw in potential customers.

To find the right location, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN). Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

It is important to establish a bank account in your car rental business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information needed for business accounts
• Meet with a banker to discuss your business needs and establish a relationship with them

You should get a business credit card for your car rental business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company. When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build business credit, which could be very important in securing loans and getting credit lines for your business in the future.

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – getting your Articles of Incorporation as discussed above
• Certificate of Authority – allows you to do business outside of your state

Depending on the type of car rental business you launch, you will have to obtain the necessary state, county and/or city licenses.

Business insurance policies that you should consider for your car rental business include:

• General Liability Insurance – This covers third-party bodily injury and property damage that occur as a result of your car rental business’ operations.
• Automobile Liability Insurance – This covers third-party bodily injury and property damage that occur as a result of your business’ use of vehicles.
• Property Damage Insurance – This covers damage to property that occurs as a result of your car rental business’ operations. This may include damage to vehicles, buildings, or other property.
• Worker’s Compensation Insurance – This covers injuries that employees of your car rental business sustained while on the job. This may include accidents that occur while employees are driving vehicles, lifting heavy objects, or working in other potentially dangerous situations.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

To start a car rental business, you will need computers, phones, and a printer. Depending on the size of your business, you might invest in reception and office furniture. If you plan on performing maintenance such as oil changes and minor body repairs in-house, you will also need to purchase the necessary equipment.

Marketing materials will be required to attract and retain customers to your car rental business.

The key marketing materials you will need are as follows:

• Website – Likewise, a professional car rental business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. You might also offer online bookings. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your car rental business online.
• Logo – Spend some time developing a good logo for your car rental business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

Car rental companies need software that can do a few different things.

First, you will need booking software that manages customer rentals. Next, your car rental business will require inventory or fleet management software to track and maintain your vehicles. Lastly, the business will need software that can process payments and perform other accounting tasks.

There are a number of car rental software programs that perform all of these duties in one piece of software, which may be a more cost-effective way of getting the software you need. Some popular options include RENTALL and HQ Rental Software. If you plan to use Quickbooks for your business accounting, many car rental programs also integrate with that.

Research the software that best suits your needs, purchase it, and set it up.

When hiring employees for a car rental business, you will need to consider the specific needs of the business. In general, a car rental business will need employees who are knowledgeable about cars and car rental procedures, as well as customer service representatives to assist customers with their rental needs. You might also want to hire some sales employees to generate new business and partnerships with local organizations.

To find good candidates, post ads locally or with online job boards. If you have connections in the car rental industry, you might also ask around to see if anyone is looking for a new opportunity. Once you are ready to interview a candidate, make sure their background matches your needs and that they seem like a good fit for the company culture you want to build.

You are now ready to open your car rental business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Car Rental Business FAQs

Is it hard to start a car rental business.

Starting a car rental business can be difficult, but with the right planning and preparation, it can be a successful venture. Some of the biggest challenges will be finding the right location for your business, funding startup costs, and competing with other car rental companies. Following the steps we have outlined above will help you get things started and, with a little hard work and dedication, you can create a thriving car rental business.

How Can I Start A Car Rental Business With No Experience?

As with any business, there are a few key steps you need to take in order to get started in the car rental industry. To begin, you will need to do some research into the industry and make sure you know what you are getting into. You should also research the best locations for car rental businesses and see if there are any spaces available in your area. You might also consider chatting with a business consultant or professional with experience in the car rental industry who can answer your questions.

What Type of Car Rental Business Is Most Profitable?

The type of car rental business that is typically most profitable is a luxury car rental business. This is because there is a high demand for luxury cars, and the profit margins are higher for luxury car rentals than for standard car rentals.

How Much Does It Cost To Start A Car Rental Business?

The cost of starting a rental car company will vary depending on the size and scope of the business. However, there are some general costs that you can expect to pay when pursuing a car rental business venture. You will need to purchase or lease a fleet of cars, and you will also need to pay for insurance, licensing, and other administrative costs.

What Are The Ongoing Expenses for a Car Rental Business?

Other costs you should be aware of when starting your own car rental business include:

• Insurance - Leasing cars comes with risks so entrepreneurs need to protect themselves against lawsuits or accidents that customers may file against the company.
• Customer Billing & Merchant Expenses - Unlike traditional companies that bill customers at the end of every month, in the car rental industry, you need to individually track when customers rent out cars and submit invoices for services rendered.
• Monthly Vehicle Costs - Starting this type of business usually begins with a few vehicles, so it's important to consider how much it'll cost to maintain these cars on a regular basis. In addition, if you plan on renting out luxury vehicles then consumers may expect businesses to provide complimentary floor mats or car washes during each transaction. Over time, these small expenses can add up without adding additional revenue.
• Fleet Insurance Premiums - Many leasing companies charge extra fees in order for business owners to use their car fleet so it's important that you factor these prices into your monthly or semi-annual expenses.

How Does a Car Rental Business Make Money?

The car rental business model is to make money by renting cars to customers. The company charges a fee for the car rentals, and also collects payments for any damages that occur to the cars. In addition, the company may also charge extras such as mileage fees or airport fees.

Is Owning a Car Rental Business Profitable?

It is estimated that car rental companies make about $18 billion in revenue each year. The profit margins are about 6% for most car rental businesses, but if you find the right location and negotiate well with fleet insurance companies and credit card processing services then your profit margin can be much higher (similar to how Uber works).

There are also a few things you need to do in order to make your new business successful:

• Choose The Right Location . You'll want to find a place that is easily accessible and has a lot of foot traffic.
• Market Your Business Effectively . Make sure you have a strong online presence and use marketing materials (e.g. flyers, business cards) to promote your business.
• Offer Stellar Customer Service . Make sure your employees are friendly and helpful and always go the extra mile to satisfy your customers' needs.

Why Do Car Rental Businesses Fail?

There are a few reasons why car rental services fail. One reason is that the startup costs can be prohibitive. Another reason is that the competition is fierce, and it can be difficult to attract customers away from the larger businesses. Additionally, vehicle rental businesses can fail if they do not have a good business plan in place, or if they do not manage their finances well.

What Are the Different Types of Car Rental Businesses?

There are multiple ways or business models in which a car rental business can generate revenue. As an entrepreneur, you'll need to decide what type of services your business is going to offer so that consumers have a clear idea of how much it'll cost them

• Hourly Rentals - This type of rental car business allows customers to rent cars for specific periods of time rather than on a monthly basis. These cars will be rented out at an agreed upon price per hour with most companies also charging excess mileage costs.
• Daily Rentals - This rental car service allows the owner to set their own rates for each rental contract or they can follow standard industry prices/models. Since most people frequently rent out vehicles for a span of one full day, these costs tend to remain consistent from one company to the next.
• Weekly Rentals - Those who choose this type of rental business need to provide their customers with a list of prices and options that will be charged during transactions . Majority of car rental companies offer this service as it allows consumers to pay one flat fee for a full week's use rather than paying separate charges per day or hour
• Monthly / Long-Term Rentals - since most consumers only need an automobile for up to 30 days, entrepreneurs in this field can charge more money for longer leases. However, many companies also provide "monthly" plans which usually include unlimited mileage and other perks such as complimentary insurance premiums or free pick-up and drop offs at airports.

How Do I Get Funding To Purchase My First Fleet of Rental Cars?

Getting access to car rental company financing is one of the biggest challenges entrepreneurs face when they start their businesses. In order to get the funds needed for your initial fleet of cars, you'll need to start by taking a close look at your financial situation. Unfortunately, it can be very difficult to get approved for a business loans if your credit score isn't high enough, but here are a couple of other options:

• Business auto loan from a bank
• Cash advance from credit card
• Personal loan from a bank
• Loan from family or friends

How Do I Know What Area To Start My Car Rental Business In?

When deciding where to open your car rental franchise or company it's important to find a business location that meets the needs of your target market. 

For instance, if you're focusing on tourists who are looking for vacation rentals, then it may make sense to locate near popular attractions or hotels. Alternatively, if you want to target business professionals then it's a good idea to open near airports or office buildings.

How Do I Market My Car Rental Business?

One of the best ways to market your car rental business is by providing excellent customer service. If you have a high-quality fleet along with a network of local pickup and dropoff locations, potential customers will be drawn to you rather than looking elsewhere. 

In addition, it's important to constantly promote your brand and business model so people become familiar with your name and feel more inclined to use your services.

What Are 7 Marketing Strategies for a Vehicle Rental Business?

Marketing is an essential part of running any type of company, but especially one that requires a fleet of vehicles. In order for your business to be successful you need to have a strong marketing plan in place before you start, as well as an ongoing plan that continues to attract new customers and retain customers that are happy with your services.

• Offer promotional rates 
• Promote the business via social media platforms 
• Invest in search engine optimization (SEO) 
• Partner with complementary businesses 
• Utilize online reviews to your advantage 
• Add quality photos of the car on your site or app 
• Build a customer loyalty program with discounts and freebies included

Why Start a Car Rental Business?

There are many reasons why starting a car rental business can be beneficial:

• Low Overhead -  you don't need to purchase your own stock of cars allowing you to focus on selling rentals
• High Demand - there's always going to be somebody who wants or needs a vehicle
• Quick Setup Time - it only takes about 3 months for most businesses to get off the ground
• Potential To Grow -  many car rental businesses start small and then gradually expand their fleet as demand increases.

How Do I Calculate What Type of Car Rental Option To Begin With?

When determining what type of car rental company you want to start there are a number of things to consider such as:

• Do you want to offer an hourly, daily, weekly, or monthly rate?
• How many cars do you need?
• Where do your customers live?
• How will you market your business?

The best way to answer these questions is by speaking with potential customers (e.g. local community groups, corporate clients) and finding out what they need.

Where Can I Download a Car Rental Business Plan PDF?

You can download our car rental business plan PDF template here. This is a business plan template you can use in PDF format.

Rental Car Business (How Much Does It Cost To Open)

How To Start an Exotic Car Rental Company

The DONT’S of the Rental Car Business

SEO for Car Rental Vendors

For additional information on the car rental industry, consider these resources:

• Auto Rental Resource Center: www.arcc.net
• American Car Rental Association: www.acraorg.com
• Car Rental Mavericks: www.carrentalmavericks.com

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Renting a Car in Malaysia in 2024: All you need to know

Right in the middle of lush green hills and tropical jungles, you’ll find bustling cities and beautiful colonial towns – welcome to Malaysia . This incredibly diverse country is a cultural melting pot worth visiting on any trip through Southeast Asia. It’s got incredible landscapes and tropical islands, as well as delicious fusion cuisine and incredibly friendly people. Discover all of Malaysia by renting a car.

• How to rent a car?
• Requirements
• Is it easy/safe to drive?
• Tips for renting
• Price for a rental car
• Where to rent a car?

How to rent a car in Malaysia

Although Malaysia’s public transport has improved in recent years, the connections between locations still have their issues. The journeys often take long, include delays, and transportation is known to get crowded. Therefore, many locals, as well as tourists, prefer to travel by car instead. Renting a car in Malaysia allows you to travel without depending on other schedules and is a great way to explore the beautiful country at your own pace.

We recommend to rent a car in Malaysia through Sunny Cars with free cancellation and insurance included. Book your rental car here .

What do you need to rent a car in Malaysia? 

When you rent a car in Malaysia, you’ll need to bring the following documents with you:

• Your driver’s license from your home country
• Your ID (passport) 
• A Credit card in your name
• An International Driver’s Permit (IDP)

To be able to rent a car in Malaysia, you’ll have to be at least 23 years old and have had your driver’s license for at least one year. All drivers must provide a valid driver’s license, a passport, and a credit card to make the payment and hold a deposit. Anyone with a valid driver’s license can drive in Malaysia as long as their license is accompanied by a version in English or Malay (International Driver’s Permit). You can arrange an IDP here , which costs only 15 USD. 

Rental car insurance in Malaysia

When renting a car in Malaysia, there are many types of insurance offered by your rental agency. Often, one or more of these is already included in the car rental rates, such as a Collision Damage Waiver (CDW). This basic insurance should also cover you from paying the excess deductible.

It’s important that you carefully read through your car rental agreement before booking to be absolutely sure. If you want to add additional insurance, make sure to check with your credit card company first whether they do not already cover you. Your credit card company might cover rental car damages associated with accidents, for example.

Tip: Keep all your documents with you in the car when driving: valid driver’s license, ID, registration, and insurance papers. This way, in case the traffic police stop you, you’ll have everything you need to show. Note that your passport must have an entry stamp that is no more than 90 days old. 

Is it easy to drive in Malaysia?

As a holiday destination, Malaysia remains a bit under the radar compared to its neighbors Singapore and Thailand . However, it’s full of beautiful surprises and has a well-developed infrastructure, which makes for an effortless travel experience. 

Read our Malaysia Travel Guide.

Roads and signs

Diverse Malaysia is a great country to explore by rental car. It has a high-quality road system with good infrastructure and frequent road signs. In fact, this well-maintained road network is often considered one of the best in Southeast Asia. 

In Peninsular Malaysia, you can easily get to every sight due to the good roads. The same goes for both states in Borneo but mainly between the bigger cities. If you want to explore outside these areas, you can expect the roads to be less maintained. There are many one-way streets in cities such as Kuala Lumpur, and though convenient, you can expect more traffic and a longer journey.

Tip: Unless you’re familiar with the roads in the country, make sure you have a good road map or GPS to navigate. Google Maps and Waze App are both great options when driving in Malaysia. 

The maximum speed limit on the Malaysian highway (expressway) is 110 km/h. On the roads in the mountains and near residential areas, you can drive a maximum of 90 km/h. And lastly, the maximum speed limit in the cities is 60 km/h. Try to stick to the speed limits, as there are frequently mounted speed cameras on every type of road in Malaysia.

Note: Due to its past as a British colony, another important rule to remember when driving in Malaysia is that you drive on the left-hand side of the road!

Malaysia also has an extensive toll network connected to most of the country’s highway system. If you’re traveling between major cities such as Kuala Lumpur and Penang , most roads will include a small toll fee (e.g., RM 1.20 / 0.30 USD). 

You can conveniently pay the tolls with cash or with a prepaid card like Touch ‘n’ Go or SmartTag. Depending on your route, you might have several instances where you pay a toll. Therefore, the easiest way is to have some small cash ready in your car. The booths on the far left side are often cash only, recognizable by the signs Tunai (cash) or Sahaja Tunai (cash only). Otherwise, you can buy the prepaid card at a local grocery shop or gas station for RM 10 and use the Tap ‘n’ Go lanes. To re-upload, you can find specific lanes at the toll booths on selected highways.

Also read: Best Things to do in Cameron Highlands .

Safety of driving in Malaysia

Renting a car in Malaysia and driving through the country is generally safe. Malaysians are considered better drivers than other people from Southeast Asia; however, not all follow the traffic rules. Some merge into lanes or turn without notice, for example. It’s, therefore, important to always look around you when making a maneuver. Other than that, drivers drive relatively calmly, and traffic often runs a little slower.

Fun fact: The locals love to drive, with a whopping 93% of households owning a car. This makes that Malaysia has the third-highest rate of car ownership in the world.

Asian countries are also known for their many motorcyclists on the road. This is something to keep in mind when renting a car in Malaysia, especially in major cities. Make sure you’re careful with the blind spots around your car and use your signals and mirrors when changing lanes. As long as you stay calm, take your time, and know how to drive in a big city, everything will be fine. 

Tip: If you’re involved in an accident, make sure to report it at a local police station as soon as you can. It’s best to be the first person there, so you avoid false accusations and a possible fine upon leaving the country. Your rental agency will help you with this. 

Driving on Langkawi  

The beautiful archipelago in northern Malaysia, Langkawi , is a must-visit destination when exploring the country. You could easily spend an entire week on the main island, discovering hidden waterfalls, pristine beaches, and lush jungles. Though you can easily travel the island by taxi or motorbike, with a car, you can cover the most ground. 

Travel Insurance Don't forget a travel insurance for your Malaysia trip! Heymondo covers medical emergencies, theft, delays, cancellations, lost luggage, and more, with 24/7 worldwide assistance and medical chat. As a Salt in our Hair reader, we've got you 5% off! Check Heymondo here

Driving on Langkawi is fairly relaxed, with low traffic volume, especially outside bigger towns. The roads are in fairly good condition, and the same traffic rules apply. As it’s an island, you can drive from end to end within just 30 minutes.

Read more: Things to do in Langkawi, Malaysia .

Top tips for renting a car in Malaysia

1. getting gas.

Petrol stations in Malaysia are frequent and easy to find. About every 50 – 100 kilometers, there’s one along the highway, often combined with a large rest point, restrooms, restaurants, and even some shops. 

Fueling is either done by yourself or by one of the employees. You can pay with cash at the counter, where you also tell the cashier which pump you’ll use and how much fuel you need. If you’re ever in doubt about what type of fuel your rental car needs, look for the sticker that indicates that. You can typically find this on the car key, dashboard, or fuel door. Petrol costs about RM 2.05 per liter (0.45 USD), which is the most affordable price you’ll find in Southeast Asia.

2. Be mindful when parking

Parking in Malaysia can be quite an adventure, especially in big cities like Kuala Lumpur. In popular areas, you can either park on the street or in a parking lot, which both require payment. The exact rules and price depend on where you are. In Georgetown, Penang, for example, you need to get a voucher to park on the street, but other areas might work with a parking meter instead. If you’re ever in doubt, you can always ask the parking attendants. You can find them near parking lots, and everyone speaks really good English. 

Tip: A lot of hotels offer complimentary parking. If you’re traveling through Malaysia, make sure to check this before booking your next hotel. This is super convenient and will ultimately save you some money.

You’ll notice that locals sometimes park wherever they want, but that’s not without the risk of a fine. Try to park your rental car in covered spots so the car doesn’t get too hot, and never leave your windows open – monkeys will get in there and take your belongings! 

3. Check the car and your contract

When you pick up your rental car in Malaysia, make sure to do a walk around and check if everything’s there. Try to point out all the existing damages to the rental agent and record them. This is to make sure you don’t get charged for any pre-existing damages. Do the same when you return it, especially if it’s at a drop-off location outside an office. 

Make sure to also thoroughly check your rental agreement and see if there are no hidden fees or rules. A mileage limit could be included there, for example, though most rental companies offer unlimited free kilometers. 

Get a travel insurance for your trip because it covers costs for a stolen or damaged rental car or in case of an accident.

How much does a car rental in Malaysia cost?

Renting a car in Malaysia is quite affordable, with a daily cost between 14 – 50 USD a day. The price depends on the type of car you want to rent and the duration of your rental. A bigger car or automatic vehicle costs more than a smaller economic car, for example. Renting a vehicle for a longer period usually also decreases the daily price, which particularly applies during the high season. You’ll have the best price per day when you book for at least one week. 

Prices are often also the lowest when you pre-book online instead of in a rental office. The further you do this in advance, the cheaper the rental gets. When booking close to the departure date, the prices are often much higher. Note that the price mentioned on the rental car websites is usually not the final price and that you can expect a few extra dollars for booking fees and tax.

Getting the right vehicle 

Most rental cars in Malaysia are fairly new and modern. Depending on your itinerary or company, you have differently-sized vehicle options to choose from. If you’re traveling with just a few people, a small economical rental car is the perfect option to zoom across Malaysia with. However, if you’re looking for something a bit bigger, there are plenty of options to book. When picking up your rental car, there’s sometimes still room to negotiate. You don’t need a 4×4 vehicle when driving through Malaysia. 

Where do I rent a car in Malaysia?

There are many good car rental companies in Malaysia to choose from. The best way to see all your options is to browse and book online in advance. Reserving in advance ensures that you get the car you want, possibly for a lower price. 

If you haven’t booked online, then popular locations to rent a car from are Kuala Lumpur International Airport or several locations in downtown KL. However, it’s also not uncommon for your rental car to be dropped off and picked up from your hotel at no extra cost. One-way rentals in Malaysia are allowed and often free of charge as long as you’ve rented for at least three days. This is convenient if a complete round-trip wasn’t part of your Malaysia itinerary. 

By purchasing through our links, you support us at no additional cost. Thank you for your support. ♥️

• Find Hotels via Booking.com
• Find a Rental Car via Sunny Cars
• Find Flights to Malaysia via Skyscanner
• Get a Travel Insurance via Heymondo
• Book Tours & Attractions via GetYourGuide
• Book a Bus/Train/Transfer via 12Go

Best Things to do in Cameron Highlands, Malaysia

15 things to do in kuala lumpur (3-day guide), 9 best things to do in ipoh, malaysia.

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Car Rentals (Self Drive) Market in Malaysia to 2023: Fleet Size, Rental Occasion and Days, Utilization Rate and Average Revenue Analytics

All the vital news, analysis, and commentary curated by our industry experts.

Published: May 29, 2020 Report Code: GDTT10274DB-ST

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Table of Contents

Car Rental (hiring of a passenger vehicle for self drive, which includes cars and small vans, by both business and leisure travelers for short term duration; excluding leasing and long term rentals) market has evolved intensely in the very recent years and is also expected to evolve in similar fashion in the near future. The report Car Rentals (Self Drive) Market in Malaysia to 2023: Fleet Size, Rental Occasion and Days, Utilization Rate and Average Revenue Analytics provides deep dive data analytics on wide ranging Car Rental market aspects including overall market value by customer type – Business and Leisure, by point of rental – Airport and Non-Airport, Insurance / Temporary Replacement Revenue, Car Rental Occasion, Days and Length for the period 2014 to 2018.

Furthermore, the report also details out Fleet Size (number of operational cars available for short term rental for the purpose of business, leisure, and insurance replacement) for the period 2014 to 2023 along with Utilization Rate and Average Revenue per Day from the Car Rental business in Malaysia.

The report acts as an essential tool for companies active or plans to venture in to Malaysia’s Car Rental market. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting.

– Overview of the Car Rentals business inMalaysia.

– Analysis of the Utilization Rate, Fleet available for rent and actual on-rent days.

– Historic and forecast revenues by Customer type and average revenue per day for the period 2014 through to 2023.

– Analytics on key market moving parameters rental occasions, rental days, average rental length and others.

– Key revenue statistics on Point of Rental and Insurance / Temporary Car Replacement market segments.

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– Embrace the market information at category and segment level for precise marketing plan.

– Outline investments on potential growth factors considering actual market size and future prospects.

– Evolve business plans based on forecasts information.

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Table 31: Travel and Tourism Terms and Definitions

Figure 24: Malaysia Car Rental Market – Average Revenue per Day Forecast (MYR), 2018 – 2023

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What is GoCar and how does it work?

GoCar Malaysia is a popular car sharing platform that allows its members to rent cars by the hour or day using the GoCar mobile app or website. Unlike traditional car rental services, GoCar works on a membership basis where all members are part of the car sharing community.

By following guidelines and treating the car as if it’s your own, you can help us keep our rates competitive.

To get started, simply register to become a member and #TakeGoCar today!

What do I need to be a GoCar member?

To become a GoCar member in Malaysia, you need to meet the following requirements:

• You must be 18 years old & above.
• You must have a valid driver's license.
• You must have a credit/debit card.
• You must have a Malaysian phone number.

For non-Malaysian residents must be 18 years old & above, you need to have a valid passport, an International Driving Permit (IDP), and a driving license issued from your country of origin.

Please note that GoCar reserves the right to decline applications that do not meet certain requirements, and you can refer to the Member Terms & Conditions for full details.

How do I book a Round Trip GoCar?

Booking a GoCar is easy and convenient:

• Log in to your GoCar account on our app or mobile site
• Choose your preferred date and time
• Select a car
• Make payment with your credit or debit card
• Voila! Your reservation is confirmed, and you can view your trip summary in "My Bookings".

Want even more flexibility? Try our "Free Floating" car option.

How is Free Floating different from Round Trip bookings?

Experience ultimate flexibility with Free Floating - no need to book in advance like Round Trip. Simply launch the app and start your journey whenever you're ready. End your trip wherever and whenever you want, and pay only for the time you use, down to the minute.

What is GoCar doing to ensure my safety?

To ensure your safety, we have implemented the following protocols:

• We have increased our scheduled maintenance on all cars.
• Our ground staff have been trained with new hygiene and cleanliness protocols for routine maintenance and sanitization.
• In the event of a COVID-19 suspect/patient coming into contact with one of our cars, we will immediately deactivate, quarantine, and professionally sanitize the vehicle.

What are the benefits of Drive Now Pay Later?

When Using GrabPay as a payment method, comes with the following benefits:

• 4 months installment split.
• 0% Interest when paid on time.
• Earning GrabPoints for your spending.

What is GoCar Garage?

GoCar Garage is your all-in-one digital solution for car service and maintenance needs, available exclusively on Malaysia's top on-demand mobility platform, GoCar.

How do I book an appointment for my car?

Getting your car serviced and maintained has never been easier with GoCar Garage.

• Download and log in to the GoCar app, click on “Car Repair & Maintenance”
• Select your preferred garage
• Choose the service you need
• Select your available service date & time
• Voila! Your appointment is made, and you can view your appointment details in "My Bookings".

If, for any reason, your selected garage is unable to accommodate you, don't worry. Wait for a representative to contact you with an alternative date and time. Then, simply cancel your original appointment and book a new one with the newly agreed details.

What service packages are available?

We offer three pit-stop service packages for your convenience, each including oil filter, drain washer, free car wash, and free basic sanitization. Choose from:

• Mineral Package: with mineral engine oil
• Semi Package: with semi-synthetic engine oil
• Full Package: with fully synthetic engine oil

*Service package costs may vary if your vehicle needs more than 4 liters of engine oil.

What are the benefits of using GoCar Garage?

At GoCar Garage, we offer a range of solutions that you'll appreciate, including:

• Affordable servicing options with a choice of 3 quality engine oils.
• 2 hours of free GoCar Sharing usage.
• GoValet pick-up service for hassle-free servicing.
• Trained technicians experienced in managing various makes and models.

How is the pick-up and drop-off process for GoValet?

GoValet is our hassle-free pick-up and drop-off service for car servicing, provided by our licensed partners at Bateriku.

• After booking your GoCar Garage appointment via the GoCar app, proceed to select GoValet as an additional service.
• Before the pick-up time, the app will send you an SMS reminder.
• Our team will contact you before heading towards the pick-up address to ensure your availability when handing the car over.
• Once our team arrives, an Appointment Letter will be shown by them as proof.
• Our team will then complete the Inspection Checklist and get your sign off.
• If any major changes are needed for the car, our team will inform you of the new return date/time.
• Our team will contact you before leaving the garage, ensuring your availability to receive the car.
• Our team will send the car to the customer's location, hand over the car to you, and get the sign off on the Inspection Checklist (Recipient section).

Do I get usage of a GoCar while my car is being service?

When using GoCar Garage, you get access to GoCar free of charge for 2 hours. Subsequent usage is chargeable. Here's how it works:

• Once your GoCar Garage booking is confirmed, an email with a unique promo code for a FREE 2-hour usage of a GoCar will be sent to you via email.
• Ensure to sign up as a GoCar member before your service appointment (up to 24 hours needed for new member sign up).
• Book a "ROUND TRIP" and select your booking date and time. Key in the promo code and start your trip.

What is GoCar Subs?

GoCar Subs is the debt-free way to "own" a car. Our car subscription service provides a hassle-free alternative to traditional car ownership.

What is a car subscription?

Car subscription allows you to access a car of your choice by paying a monthly fee. At the end of your subscription term, you can choose to purchase the car, return it, or continue with another subscription.

Our car subscription service offers benefits that cater to consumers' fast-moving lifestyles, including:

• Fast application assessment
• No need for hire purchase loans
• No long-term lock-ins or interest rates
• No hefty down payments
• No car depreciation concerns.

Our affordable all-inclusive fees cover access to the car, insurance, road tax, regular servicing fees, and 24/7 nationwide roadside assistance.

How do I sign up?

• Sign up for a GoCar account and clicks "Subscription"
• Choose a car
• Click "subscribe" and provide your details
• Upload the required documents based on your subscription plan
• You'll receive a status update within 24-48 hours
• Make your payment - monthly subscriptions require a security deposit and a one-time fee, while 12-36 month subscriptions require a security deposit and first-month payment
• Once payment is made, your car will be ready within 7-21 days depending on your subscription plan.

Who is eligible to apply for GoCar Subs?

GoCar Subs is open to all Malaysian and international residents(T&C apply), including companies, who must be between 18 to 65 years old and possess a valid driving license.

What are the categories of models available?

GoCar Subs offers a streamlined pricing system with 8 categories of vehicles, making it easy for customers to select a car within their budget. Our categories and starting prices are as follows:

• Econ: RM899
• Sports: as listed on GoCar Subs website
• Base: RM1,199
• Plus: RM1,599
• Exec: RM1,899
• Work: RM2,099
• Luxe: RM2,499
• Electric: as listed on GoCar Subs website

*A mandatory CDW fee is applicable on top of the monthly payment.

Can I swap vehicles in between my subscription plan?

With our new SWAP plan, subscribers who have committed to a period of 12 months or longer can swap their car up to twice a year, regardless of vehicle category, for a small fee of RM250 per swap.

• Before swapping your current vehicle, it needs to be used for a minimum of 3 months.
• Your security deposit and monthly charge will be changed accordingly.
• This plan is not applicable to Weekly, Monthly & 6 Months subscription.

Can I terminate my Subscription early?

Subscribers are required to adhere to their subscription period as per contract.

If you’re unsure, it is best to select a shorter subscription period before renewing to a longer subscription term. In the case whereby early termination is needed, a penalty fee will be imposed, up to the remaining value of the contract term.

If you need any assistance, contact us at [email protected] or contact us at 1800-18-8663 for assistance.

I have foreign driver’s license. Am I eligible to subscribe?

Yes, but the requirements vary depending on the following:

1. Weekly and Monthly Plans (short term plans):

• Valid license accompanied by an English or Malay translation with the right driving class
• Valid International Driver’s Permit
• Valid Malaysian Driver’s License

*Your home country's driving license (not translated) will not be applicable.

2. 6/12/24/36 Months Plans (long term plans):

• Valid Malaysian Driver’s License.

What is GoEV?

GoEV is our newly launched electric vehicle service , available for GoCar Sharing - Round Trips where you pick up and drop off the car from the same location.

GoEV offers the renowned Nissan Leaf where every day Malaysians can experience an electric vehicle.

What are the GoEV Share rates?

Our rate for Nissan Leaf will be starting RM17.90/ hour and RM179 for a daily rate. The longer you book, the more savings you enjoy.

Promotions available from time to time. View the GoCar app for the latest offers.

What EV cars do you have in your fleet?

We currently have the latest generation Nissan Leaf available.

The Nissan Leaf has been a global leader in electric mobility with more than 500,000 units sold worldwide since its launch. The Nissan Leaf is compact, 100% electric and offers instant acceleration with a host of advanced features you’ll be sure to appreciate.

Where can I find a GoEV zone?

We are starting off in Klang Valley , and you can find the active zones directly on the GoCar mobile app.

Some of our partner locations include - Avenue K in KL City Centre, MyTown Shopping Centre Cheras, GoCar Petaling Jaya and more.

Click on Round Trips to view all the locations available.

Launch the GoCar mobile app now.

How far can I travel with a full charge on the Nissan Leaf?

The distance that you can travel varies depending on a variety of factors, including road conditions, driving style and more.

Theoretically, a full charge for the Nissan Leaf should total approximately 311km based on New European Driving Cycle ( NEDC test method - combined cycle).

*Having said that, we strongly recommend ensuring to proactively charge your GoEV. Do not wait till the last minute.

How do I start my GoEV trip?

Starting a GoEV trip is just like a normal GoCar Share booking . You can unlock the car 10 mins before your reservation.

1. Launch the GoCar mobile app , and click start your trip via GoCar mobile app 2. Proceed with the usual car photo reporting process 3. Push the EV cable button located inside the car (driver right side) and then you can unplug the EV charger . Put the EV cable back at the EV charger 4. Check to make sure you have the ChargEV card and the EV cable in the car boot, so you can access ChargEV chargers located nationwide.

Will my GoPocket Points expire?

Yes, all GoPocket Points will expire on 31st December every year, except for the GoPocket Points that are purchased via the app.

*You may refer to your app under 'GoPocket' to check how many points will expire.

How do I buy GoPocket points?

1. Tap on the menu icon 2. Tap on GoPocket 3. Tap on Buy Points 4. Select one of the options 5. You’ll be redirected to make payment to complete your purchase

Will my purchased points expire?

No. Rest assured that your remaining points are safely tucked in your GoPocket.

*However, if your GoPocket points are earned via refunds or reimbursements, do note that your points will expire by 31st December of the year.

Need Assistance?

for anything related to your GoCar experience:

[email protected]

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Malaysia car rentals

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Cheap car hire in Malaysia

Top tips for hiring a car in malaysia.

• If you love to drive, then you are sure to enjoy driving in Malaysia because it has one of the most extensive road networks in Southeast Asia. You may not care for the fact that many of the highways leading to and from them have toll stations, so get yourself a "touch and go" card if you travel them often because once you can escape city limits, there are thousands of miles of road to explore.
• It is fortunate that many of the hotels in the capital city of Kuala Lumpur offer their guests complimentary parking, otherwise finding space in the city can prove to be extremely difficult due to sheer number of cars on the road. There are municipal car parks as well as parking meters and if you use a car park make sure your ticket is properly displayed or you could be subject to a fine.
• The use of speed cameras by the authorities is well known to the locals in Malaysia so sticking to the limit is always a great idea. The blood alcohol level in the country is the same as for many cities in the United States (80 mg), however you should still exercise caution if you choose to rent a car in Malaysia.
• If you’ve got a few hours to spare, it’s worth driving from Kuala Lumpur to Singapore or vice versa. From Kuala Lumpur you can pick up the E37 from Jalan Sunga Besi which will connect you to the AH2 and you can follow it from there all the way south to Singapore. Be sure to plan your trip carefully using a good map or turn on your GPS and enjoy the ride.
• 25% of our users found rental cars in Malaysia for RM 133 or less
• Book your rental car in Malaysia at least 1 day before your trip in order to get a below-average price
• Off-airport rental car locations in Malaysia are around 18% more expensive than airport locations on average
• Economy rental cars in Malaysia are around 36% more expensive than other car types, on average

FAQs about hiring a car in Malaysia

How much does it cost to hire a car in malaysia.

On average a car hire in Malaysia costs RM 302 per day.

What is the most popular car hire in Malaysia?

Economy (Proton Persona or similar) is the most frequently booked car hire type in Malaysia.

What is the cheapest car hire company in Malaysia?

In the past 72 hours, the cheapest car hires were found at Goso Rent a Car (RM 86/day), Galaxy Asia Car Rental (RM 89/day) and Agtran (RM 91/day).

How can I find car hires near me in Malaysia?

Take a look at our extensive car hire location map to find the best car hire deals near you.

Where should I hire a car in Malaysia?

Based on car searches on KAYAK, the most popular cities to hire a car in Malaysia are Kuala Lumpur (36% of total searches of users looking to hire a car in Malaysia), Penang (22%) and Kota Kinabalu (18%).

How much does it cost to hire a car for a week in Malaysia?

On average a car hire in Malaysia costs RM 1,138 per week (RM 163 per day).

How much does it cost to hire a car long term for a month in Malaysia?

On average a car hire in Malaysia costs RM 4,877 per month (RM 163 per day).

What is driving like in Malaysia?

The law requires that you drive on the left side of the road in Malaysia and all children must wear a seatbelt while the vehicle is in motion. Children under 4 years of age are forbidden to use the front passenger seat and congestion should be regularly expected due to the high volume of vehicular traffic in Malaysia.

How old do you have to be to hire a car in Malaysia?

All the major rental car companies require that you must be at least 23 and not older than 65 and that you must have been driving for at least 12 months to rent a car in Malaysia. In addition to a valid US driver’s license you will also need to acquire an International Driver’s Permit by the time you arrive in the country to pick up your rental car.

How much does petrol cost in Malaysia?

Petrololine prices at the pump are about 2,08 MYR (0.51 USD) per liter and approximately (1.93 USD) per gallon which is actually cheaper than in the United States on average. For diesel driven cars, the prices remain very competitive with a liter costing 2,18 MYR (0.54 USD) and 2.03 USD per gallon.

What are the speed limits in Malaysia?

Before you set out to enjoy the miles of roads that Malaysia has to offer, take a note of the speed limits that must be observed on the highways and byways. The fast speeds of 110 km/h (68 mph) are reserved for highways and motorways with intermediate speeds of 90 km/h (about 56 mph) in rural areas and the lowest speed of 60 km/h (37 mph) when you are traveling within cities and well populated areas.

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Good to know

When to book a rental car in malaysia, car hire locations in malaysia.

• Kuala Lumpur car rentals
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The rates displayed include all taxes and fees for hire cars for the class listed and were found by KAYAK users in the last 48 hours. Offers are subject to change and may not be available on all car hires listed or dates of travel. Some hire car providers charge additional fees for other services (GPS, infant car seats, etc.). Please check the website of the respective hire car provider.

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